Tuesday, May 18, 2021 / 1:10 AM /
Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: AFEX Commodities Exchange
The AFEX Commodities Index (ACI) remained unchanged week-on-week. closing at 333.74 points as we saw no price change on commodities listed in the ACI (Maize, Soybean, Paddy Rice and Sorghum).
It was also a quiet week for the AFEX Export Index (AEI) after it closed at 146.57 points to maintain a flat performance week-on-week. Components of the index, Ginger and Cocoa, maintained their price levels on the exchange following no trading activity on both commodities during the reporting week.
For the reporting week, maize, sorghum, and cashew recorded deals as players on the Exchange shunned trading in other commodities.
While the price of maize and sorghum remained flat amid deals executed, Cashew trended upwards moderately by 0.40% (W-o-W), closing the week at N43,050/contract.
For the reporting week. players on the Exchange were less active than they were the previous week causing executed trades to plummet w-o-w. A total of 25.017 deals were executed against 342.456 deals in the previous week. Maize was the most traded commodity, accounting for 99.9% of total executed trades. However, deals traded on maize declined 97% (W-o-W) while cashew deals increased by 700% (W-o-W).
Comparing open market prices with exchange-traded prices. Prices of some commodities in the open market are unstable with prices hovering around the same point in the week in. week out. However, open market prices remained higher than Exchange executed prices across all commodities of interest.
Maize, soybean, and ginger prices were up 0.89%, 1.97%. and 26.96%, respectively in the open market. However, the price of paddy rice and sorghum declined slightly by 1.01% and 0.81%. Cashew maintained its price levels while sesame is currently out of season.
With recent disruptions in economic activities in Kaduna - major producing state of most grains - such as a 5-day strike action in most sectors of the state, food inclusive, players expect little or low supply of grains in the market which should see prices pressured further amid existing demand.